KMEA Offers Electric Distribution System Assessments to Member Cities

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In 2016, KMEA contracted SEGA Engineering to complete Distribution System Assessments for the cities of Girard and Garnett in order to determine the value of the Assessments.  After reviewing the results, it was determined that these assessments were indeed valuable and could assist cities in determining problem areas, future projects and funding needs.  
KMEA has again contracted with Sega Engineering and will offer these assessments without charge to all member cities.  
Contact Gerry Bieker at Members Services for more information or if you wish to include your city in these assessments.   
913-660-0232

City of Garnett Distribution Assessment – FINAL

EMP 3 Cities Meet in Neodesha

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The February EMP 3 Meeting was held in Neodesha.  Along with the normal agenda items, EMP 3 member cities listened to a presentation by William Hiller, Maurice Moss and Aiden Smith from the Southwestern Power Administration providing information on 15 year contract renewals.

Natural Gas Industry – 2016 Review, Dixie Riedel

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In the history of the natural gas industry, 2016 will be remembered as an eventful and record setting year.

Excess natural gas at the end of 2015 and warm winter temperatures kept prices low at the start of 2016. The summer of 2016 reversed the trend as natural gas-generated electricity hit record levels and by summer’s end, expectations for a colder winter drove natural gas prices up.

Mid-continent daily index prices posted a low of $1.28/MMBtu on March 5th and a high of $3.73/MMBtu on December 17th.  US natural gas active futures hit $3.99/MMBtu on December 28, 2016. This was the highest level since December 2014.

Storage levels ended the winter withdrawal season (03/31/2016) at the highest end-of-season on record.  Storage inventory reached an all-time record high level of 4,047 Billion Cubic Feet (Bcf) for the week ending Nov 11th.  Much colder weather in December led to back-to-back weekly withdrawals greater than 200 Bcf; dropping storage levels below the five-year average for the first time all year last.

In August the active natural gas rig count fell to 81.  This is the first time in 29 years natural gas rig count fell below 100.  A year prior the active rig count was 233.  The rig count peaked at 1,606 rigs on September 12, 2008,

2016 was the first year the U.S. became an exporter of natural gas.  This came about with exports of Liquefied Natural Gas (LNG) and more cross-the-border pipelines being built to take gas into Mexico.

Looking ahead, the EIA (U.S. Energy Information Administration) estimates natural gas prices averaging $3.27 per MMBtu in 2017. Prices averaged $2.49 per MMBtu in 2016 and $2.63 per MMBtu in 2015.

K.C. Wolf Visits KMEA

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Dixie Riedel was the target of K.C. Wolf on Valentines Day!  Dixie’s husband Phil had a little something to do with K.C. Wolf delivering Flowers and Chocolates to her at the KMEA offices.  Of course, the entire staff knew about the surprise and anxiously awaited his arrival.

Dogwood Energy Facility Visit

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KMEA Staff met with SEGA Engineering and Dogwood Energy Staff on February 9th, 2017. Steven Hilger, P.E. (NAES), Plant Manager provided a tour of the facility and gave an in depth report on operations.  The meeting took place as part of the “Due Diligence” process prior to KMEA entering into an agreement with Dogwood Energy.

 

City Visits

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KMEA Staff Visited the Cities of Humboldt and Altamont on February 9th 2017

Johnson City Power Plant Visit

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Alan Schweitzer, Johnson City, City Superintendent

Tyce McMillan, Johnson City Assistant Superintendent

David Rohrenback, Johnson City Power Plant Superintendent

KMEA Staff met with employees of the City of Johnson City on January 31st.  Alan Schweitzer, Tyce McMillan and David Rohrenback took time out of their morning to visit with us about how the City is moving forward and replacing the aged power plant with two new CAT powered generators.  Tyce McMillan is set to take over as the City Superintended later this year as Alan intends to retire.

A Stop at Jameson Energy Center

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Bob Arellano

Keo Bopunpaseuth and Sam Mills

KMEA Staff visited the Jameson Energy Center on January 30th.  Sam Mills, Managing Director, Electric Operation and Gerry Bieker, Manager, Member Services visited with Bob Arellano and Keo Boundpaseuth and toured the facilities.

KMEA Staff Visits SouthWest Cities

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Staff visited the cities of Cimarron, Garden City, Lakin, Johnson City, Hugoton and Montezuma on January 30th and 31st.

KMEA Operations January 2017

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In 2007 Gas Generation was on margin, meaning setting the price of energy, 75% of the time. Today Gas Generation sets the marginal price for energy just under 50% of the time.   This has been driven primarily by an increase in wind technology in the marketplace.   Wind Generation now makes up greater than 15% of all installed generation in Southwest Power Pool.  Wind Generation only sets the market price when there is an excess of energy and units are priced to come off line … in other words when, prices are very low.   What does all this mean to you?

The past two years the difference between a gas vs. coal unit on margin has been irrelevant because gas prices have been low. This has translated to real time energy prices being proportionally very low.

Currently we have opposing market conditions, rising gas prices with a decrease in gas units on margin. Coal and Gas unit’s prices are starting to diverge creating a condition where we could see more swings in the real time energy price.  Hopefully, overall average prices will stay proportionally low but we could see a lower correlation between on peak and off peak prices.

KMEA member cities invested in a 24/7 operations staff that is positioned to respond to the real time market. KMEA staff monitors the market and is able adjust schedules and instruct dispatch to meet potential increase in price volatility.